- The chemicals giant had first announced its intention of selling off the business unit last October.
- The move comes under the company’s drive to reorient its focus on the more profitable verticals of its operations.
BASF SE (BASF), a renowned German chemicals company, has reportedly announced that the sale of its $3 billion-plus business unit of construction chemicals would be launched in the spring of 2019.
Reports cite, the move to divest in the domain of construction chemicals comes under the company’s ongoing drive to reorient its focus on the more profitable verticals of its business operations.
According to a report by Chemicals Technology, valued at approximately €3.4 billion, the company’s construction chemicals unit is responsible for producing additives that are used to make concrete for small to medium sized construction firms. The company had acquired the business in 2006 from German chemical manufacturing company, Degussa for approximately €2.7 billion, including debt.
The company, which announced its intention to merge or auction off the business unit back in October of 2018, reportedly stated that it has hired American investment banking company, Goldman Sachs for handling & organizing the transaction.
While Goldman Sachs declined to divulge any details related to the matter, a spokesperson from the German chemical maker stated that the process to sell off the unit is still in its initial stages.
Sources privy to the matter claimed, the company, which is the largest producer of chemical additives for the construction segment, is expected to make as much as €3 billion ($3.4 billion) in the unit’s intended sale.
The company had previously stated that the unit, the products from which have been extensively used to construct the major train tunnels in London as well as the Swiss Alps, was not integrated deeply into the company’s production network and had underperformed in the face of its profitability targets.
According to reports, the company has declined to divulge the exact date of the sale of the business unit.